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FTZ Board Expands Production Authority at Wind Turbine, Vessel Facilities

Thursday, December 01, 2016
Sandler, Travis & Rosenberg Trade Report

Wind Turbine Facility. The Foreign-Trade Zones Board has authorized expanded production under zone procedures at the GE Renewables North America LLC facility within subzone 249A in Pensacola, Fla. GE Renewables already had authority to produce wind turbines and related hubs and nacelles within subzone 249A and the FTZ Board has now added a finished product and foreign status materials and components to the scope of authority.

Vessel Facility. The FTZ Board has authorized expanded production under zone procedures at the Thoma-Sea Marine Constructors LLC facilities within subzone 279A in Houma and Lockport, La. Thoma-Sea already had authority for the construction and repair of oceangoing vessels within subzone 279A and the FTZ Board has now added a foreign status material/component to the scope of authority subject to the following conditions.

- Any foreign steel mill products admitted to the zone for the approved activity, including plate, angles, shapes, channels, rolled steel stock, bars, pipes, and tubes, not incorporated into merchandise otherwise classified and that is used in manufacturing, will be subject to full customs duties in accordance with applicable law unless the FTZ Board determines that the same item is not then being produced by a domestic steel mill.

- Thoma-Sea must annually advise the FTZ Board as to significant new contracts with appropriate information concerning foreign purchases otherwise dutiable so that the Board may consider whether any foreign dutiable items are being imported for manufacturing in the zone primarily because of FTZ procedures and whether the Board should consider requiring customs duties to be paid on such items.

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